View more from the

Most companies enter Chinese markets through a tiered strategy, categorizing cities by size and affluence. That’s a mistake. China’s 800-plus cities, 200 of them with populations over 1 million, are growing at different rates and changing in different ways. Ones that have similar numbers of people can be as disparate as France and Germany in their demographic makeups and consumer attitudes.

A version of this article appeared in the March 2010 issue of Harvard Business Review.

Max Magni is the head of McKinsey & Company’s consumer practice in Greater China.